Bitcoin transaction fees are at their lowest level in a decade!

Bitcoin transaction fees are at their lowest level in a decade!

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Bitcoin transaction fees are at their lowest level in a decade!

For a long time, bitcoin has been criticized for high transaction fees, but that has now changed.

Despite price volatility, bitcoin transaction fees have just reached their lowest level in a decade according to for data newly disclosed.

Reasons for lower bitcoin transaction fees:

Alex Thorne, a researcher at Galaxy Digital, explained the reasons for the low transaction fees in Bitcoin.

According to a report by the head of research at the level of “Galaxy Digital” the bullish rise of Bitcoin 2021 was the first and only time that a significant price rise was not accompanied by a rise in transaction fees.

Read:Visa Announces Acquisition of Ripple Partner

Thorne attributes this anomaly, which became apparent in June 2021, to several factors that came into play during the year that made the Bitcoin blockchain more efficient.

This includes increased adoption of SegWit upgrades, which has caused a jump in the proportion of aggregated transactions, and a rise in the use of Lightning Networks.

The shift in user behavior has also contributed to lower fees.

Thorne notes that there has been a sharp decline in Tether and other “OP_RETURN” transactions on the Bitcoin network, and miners selling the bitcoins they have earned lower.

The implications of all of the above are positive.

This is because the factors that contributed to this show that Bitcoin can successfully expand without being inflated by an increase in block size.

In the same analyst’s opinion, fees may not always remain so low.

While the fees will not always remain low, the success of scaling bitcoins through transaction pressure and efficiency gains rather than expanding the block space is a major achievement for developers.

Is Bitcoin facing a bear market?

Some analysts consider a long-term downtrend for Bitcoin to be coming due to the above-mentioned indicators.

Read:Traders Quit BitMEX, Bitcoin Drops 25%

Not all analysts agree with the above analysis.

This was also indicated by Alex Thorne, head of research for “Galaxy Digital”, as he expressed these opposing views that were raised, saying:

Some analysts are concerned that higher fees will be required in the future to compensate miners for securing the network as block support continues to halve and eventually disappear.

Read:Binance intends to compete with Facebook’s digital currency through the new Venus project

He added that if this were to happen, the current low-fee environment should be seen as a short-term benefit but a long-term risk.

Meanwhile, other blockchain networks such as Ethereum have also recorded notable downward trends in transaction fees.

The data shows that while the Ethereum blockchain has generated over $10 billion in transaction fees in the last 365 days, there has been a clear trend of decreasing returns for miners.

Read also:

China’s messaging app giant WeChat supports digital yuan payments

Cryptocurrency payment provider BitPay launches Bitcoin payment support via Lightning networks

And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
The founder of Facebook plans to launch a virtual digital currency destined for the world of “Metaverse”
Next post
China’s messaging app giant WeChat supports digital yuan payments